"Goa Govt Secures ₹500 Crore Loan for Infrastructure and Development Projects"

The Goa government has secured a loan of approximately ₹500 crore between April and August 2024 to compensate contractors for completed development projects and to fund new infrastructure initiatives. The state is allowed to borrow up to ₹3,700 crore for the period between April and December, with the borrowing limit set to be revised in December for the January-March 2026 period. Officials expect the total borrowing limit to exceed ₹4,000 crore.

During the 2023-24 financial year, Goa borrowed around ₹3,000 crore from a total limit of ₹4,200 crore. An official noted that the borrowing limit is likely to increase in early 2025 due to revenue growth, which has averaged 14-15%. Chief Minister Pramod Sawant has requested a budgetary provision of ₹8,700 crore from Union Finance Minister Nirmala Sitharaman for four major projects: the Exposition of St. Francis Xavier's sacred relics, improving intercity connectivity, construction of minor dams, and achieving 'smart water utility.'

Sawant emphasized the need for funds, particularly for the upcoming Exposition, which is expected to draw over 60 lakh pilgrims between November 2024 and January 2025. He has requested ₹300 crore for infrastructure preparation to ensure the smooth conduct of the event.

In the previous financial year, Goa borrowed ₹1,300 crore from the open market for infrastructure related to the 37th National Games, held in October-November 2023. The state’s borrowing history reflects increasing needs, with ₹2,700 crore borrowed in 2022-23 and ₹3,300 crore in 2020-21, when the Centre allowed increased borrowing due to the Covid-19 pandemic.

ET